Finance Minister K.N. Balagopal's latest budget has sparked conversations about a possible basis towards South Kerala. The projects and initiatives announced the southern region include large-scale investments centered around Kollam, Vizhinjam, and Thiruvananthapuram, aimed at boosting infrastructure, industrial growth, and economic connectivity.
Notably, Kollam district emerged as a major beneficiary, with nine key projects, including the Rs 1,000 crore Vizhinjam-Kollam-Punalur Development Triangle.
The project aims to transform Vizhinjam from a transshipment port into a fully-fledged import-export hub, following models such as Singapore and Dubai. To achieve this, major transport corridors—including National Highway 66, Greenfield National Highway 744, Kollam-Kottarakara-Senkottai 744, MC Road, hilly and coastal highways, and the Kollam-Senkottai rail line—will be strengthened.
Plans include establishing industrial parks, production and storage centres, as well as processing and loading/unloading facilities along the route. ₹1,000 crore has been allocated through KIIFB for land acquisition. The project will be implemented through a public-private partnership, managed by a Special Purpose Vehicle (SPV).
The Outer Ring Road will begin at Navaikulam on National Highway 66, extending to Vizhinjam Port. This road is set to become a development model for the state, with modern self-sufficient townships planned within a 2.5 km stretch.
Economic nodes will be developed in Vizhinjam, Kovalam, Kattakada, Nedumangad, Vembayam, Kilimanoor, and Kallambalam, each serving as dedicated economic zones. Land for these developments will be secured through land pooling.
The government plans to acquire 15.11 hectares of land along the Akkulam-Kollam reach of the West Coast Canal. Five development zones are envisioned, including an agro-tourism centre, an integrated fish park, backwater tourism facilities, and a boat-building and repair unit.
The Kollam Corporation land and Kallada Irrigation Project campus at Kottarakkara Ravi Nagar have been identified for setting up IT parks. Jointly developed by KIIFB, KINFRA, and Kollam Corporation, the first phase will commence in 2025-26.
The project aims to encourage local bodies to utilise government land for income generation. The second IT Park in Kottarakkara, located on 97,370 sq ft of land, is in the minister's constituency. If successful, 100 infrastructure projects will be launched within two years. Rs 100 crore has been allocated for the seed fund.
The long-awaited Thiruvananthapuram Metro project is slated to begin construction in 2025-26. However, concerns remain as the state government has yet to finalise the metro line alignment. Approval from the Centre hinges on the completion of the DPR.
Discussions with the central government are planned for the development of a shipyard at Poovar, 10 km from Vizhinjam Port. Poovar’s strategic location, 10 nautical miles from the international shipping channel, and its naturally deep shore make it ideal for handling repairs for large ships, including mother vessels from Vizhinjam Port.
Rs 30 crore for land purchase and building construction for Sree Narayana Open University headquarters in Kollam
Rs 5 crore for a marine research centre in Kollam
Rs 5 crore for a pilgrimage tourism centre in Kottarakkara
Thiruvananthapuram to be developed as an automotive technology hub
World-class GPU cluster in Thiruvananthapuram with an additional allocation of Rs 10 crore
100 acres allocated for other states to set up official business development centres in Thiruvananthapuram
Rs 50 lakh for a feasibility study on a ropeway project in Ponmudi, Thiruvananthapuram
Rs 28 crore for the completion of a new 14-storey building at RCC, Thiruvananthapuram